Etini
Valued Contributor
Most of us were told we just need to study our target market and location before starting a business. Not much attention is always given to the structure of the industry that your business is supposed to operate in. An industry in general business parlance is a collection of all businesses and related businesses that are in the same line of operation. An industry can be a micro location based, national based or global based .
How does a sound understanding of the structure of the industry help a startup?
1) It helps the start up to know the size and position of the industry: When a startup takes time to study the structure of an industry it operates, it would be able to know if the sector is growing or declining and that would help the business to position it's entry well.
2) It helps to know industry barriers and how to work around it: Some industries have barriers that might not even be pronounced but a careful study of it's structure would help an individual to know those barriers and prepare for them. Some industries don't allow people who are not members of unions to sell. This and other barriers are what proponents of other startups should be abreast of.
3) Striking partnerships: A careful study of the industry that a startup is about operate in would help the business to identify other players within the industry that it can strike beneficial partnerships with to help the business grow.
It is very important to know your industry in-depth before tiu
How does a sound understanding of the structure of the industry help a startup?
1) It helps the start up to know the size and position of the industry: When a startup takes time to study the structure of an industry it operates, it would be able to know if the sector is growing or declining and that would help the business to position it's entry well.
2) It helps to know industry barriers and how to work around it: Some industries have barriers that might not even be pronounced but a careful study of it's structure would help an individual to know those barriers and prepare for them. Some industries don't allow people who are not members of unions to sell. This and other barriers are what proponents of other startups should be abreast of.
3) Striking partnerships: A careful study of the industry that a startup is about operate in would help the business to identify other players within the industry that it can strike beneficial partnerships with to help the business grow.
It is very important to know your industry in-depth before tiu
